Bank of America (NYSE:BAC) Upgraded at Robert W. Baird

Bank of America (NYSE:BAC) was upgraded by investment analysts at Robert W. Baird from a “neutral” rating to an “outperform” rating in a note issued to investors on Thursday, MarketBeat reports. The brokerage presently has a $62.00 price target on the financial services provider’s stock. Robert W. Baird’s price objective would suggest a potential upside of 23.08% from the stock’s current price.

A number of other research analysts have also issued reports on the company. Keefe, Bruyette & Woods boosted their target price on Bank of America from $67.00 to $70.00 and gave the company an “outperform” rating in a report on Wednesday, July 15th. Wells Fargo & Company boosted their target price on Bank of America from $67.00 to $69.00 and gave the company an “overweight” rating in a report on Wednesday, July 15th. Jefferies Financial Group dropped their price target on shares of Bank of America from $75.00 to $70.00 and set a “buy” rating on the stock in a research note on Thursday, September 24th. Morgan Stanley dropped their price target on shares of Bank of America from $67.00 to $61.00 and set an “overweight” rating on the stock in a research note on Thursday. Finally, Barclays dropped their price target on shares of Bank of America from $72.00 to $68.00 and set an “overweight” rating on the stock in a research note on Thursday. Twenty research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $62.52.

Bank of America Stock Performance

Shares of NYSE:BAC traded down $0.86 during trading on Thursday, reaching $50.38. The company had a trading volume of 42,732,425 shares, compared to its average volume of 37,803,781. The firm has a market capitalization of $352.26 billion, a price-to-earnings ratio of 11.97, a price-to-earnings-growth ratio of 0.87 and a beta of 1.21. The company has a debt-to-equity ratio of 1.17, a current ratio of 0.82 and a quick ratio of 0.82. The stock’s fifty day moving average price is $58.78 and its 200 day moving average price is $56.76. Bank of America has a fifty-two week low of $46.12 and a fifty-two week high of $65.22.

Bank of America (NYSE:BAC) last released its earnings results on Wednesday, October 14th. The financial services provider reported $1.08 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.10 by ($0.02). The company had revenue of $29.96 billion during the quarter, compared to analyst estimates of $30.58 billion. Bank of America had a net margin of 16.80% and a return on equity of 12.15%. The company’s revenue for the quarter was up 3.2% on a year-over-year basis. During the same period in the previous year, the firm posted $1.06 EPS. As a group, equities research analysts predict that Bank of America will post 4.54 EPS for the current year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Total Clarity Wealth Management Inc. grew its holdings in Bank of America by 3.6% during the second quarter. Total Clarity Wealth Management Inc. now owns 4,889 shares of the financial services provider’s stock worth $279,000 after acquiring an additional 168 shares during the period. Orca Wealth Management LLC grew its holdings in Bank of America by 0.5% during the second quarter. Orca Wealth Management LLC now owns 35,087 shares of the financial services provider’s stock worth $1,999,000 after acquiring an additional 179 shares during the period. Financial Consulate Inc. grew its holdings in Bank of America by 4.0% during the second quarter. Financial Consulate Inc. now owns 4,741 shares of the financial services provider’s stock worth $270,000 after acquiring an additional 181 shares during the period. Bedel Financial Consulting Inc. grew its holdings in Bank of America by 1.1% during the second quarter. Bedel Financial Consulting Inc. now owns 16,456 shares of the financial services provider’s stock worth $938,000 after acquiring an additional 184 shares during the period. Finally, GatePass Capital LLC grew its holdings in Bank of America by 3.6% during the first quarter. GatePass Capital LLC now owns 5,451 shares of the financial services provider’s stock worth $266,000 after acquiring an additional 190 shares during the period. Institutional investors and hedge funds own 70.71% of the company’s stock.

Key Headlines Impacting Bank of America

Here are the key news stories impacting Bank of America this week:

• Positive Sentiment: Some analysts view the selloff as an opportunity. Morgan Stanley reportedly believes the regulatory fine and fee shortfall are largely reflected in the stock and sees potential upside if Bank of America delivers on its operating targets. Another analysis argues that the bank’s underlying profitability remains solid despite the recent pressure. Bank of America’s bad news may not be what investors think
• Positive Sentiment: Bank of America analysts continue to see a case for an October Federal Reserve rate hike. Higher rates could support net interest income and lending profitability, although the benefit depends on deposit costs and broader economic conditions. Why BofA still sees an October Fed rate hike
• Neutral Sentiment: Bank of America disclosed an increased indirect stake in Turkish venture investment firm ICU Girisim Sermayesi Yatirim Ortakligi to 4.1%. The investment is unlikely to materially affect BAC’s near-term earnings or valuation. Bank of America Lifts Indirect Stake in ICU Venture Investment Firm to 4.1%
• Negative Sentiment: The main pressure is the more than $1.2 billion in federal penalties tied to anti-money-laundering and sanctions-compliance failures. The fine raises concerns about compliance costs, management oversight and possible additional remediation expenses. Should You Buy Bank of America Stock After a $1.2 Billion Regulatory Fine?
• Negative Sentiment: Bank of America’s latest quarterly results missed expectations, with earnings of $1.08 per share versus a $1.10 consensus estimate and revenue of $29.96 billion versus an expected $30.58 billion. A broker also lowered its price target to $63 from $70. Bank of America price target lowered
• Negative Sentiment: Multiple law firms announced investigations or securities class actions alleging misleading disclosures related to the compliance issues. These announcements are largely duplicative and do not establish liability, but they add headline, legal and potential financial risk for BAC shareholders. Securities Fraud Class Action Filed Against Bank of America Corporation
• Negative Sentiment: Technical analysts say BAC’s break below a long-term trend line could signal a deeper correction, reinforcing the negative reaction to the earnings miss and regulatory news. Bank of America Stock Breaks Key Trend Line

About Bank of America

Bank of America Corporation (NYSE: BAC) is a diversified financial services company headquartered in Charlotte, North Carolina. It provides banking, lending, investment, payments and financial management services to consumers, businesses, institutional investors and governments.

The company’s consumer banking operations offer checking and savings accounts, credit cards, mortgages, home equity lending, auto loans and other consumer financial products. Through Merrill, Bank of America provides wealth management, investment advisory, brokerage and retirement services.